Currency strength is a measure of how valuable a currency is compared to other currencies. It can be calculated based on different factors, such as purchasing power, interest rates, or economic performance. Currency strength indicators (
https://fxstrengthmeter.com/) are tools that help traders identify which currencies are strong and which are weak in real-time or over a period of time. They can use different methods to calculate currency strength, such as relative strength index (RSI), true strength index (TSI), or linear regression slope (LRS). Currency strength indicators can help you identify which currency pairs are suitable for different trading strategies. For example, if a currency pair is in a strong trend, you can use a trend-following strategy and look for trade setups that align with the direction of the trend1. If a currency pair is ranging, you can use a range-trading strategy and look for trade setups that exploit the support and resistance levels.
